CHART OF THE DAY: Why John Paulson Says There's No Gold Bubble

John Paulson gave a
speech last night to the Chinese Finance Association, where
he discussed gold, inflation, the outlook for the economy, and
what he's investing in.

A key point: He's still a big believer in gold, and he thinks
talk of a bubble is ludicrous.

Why?

This picture was taken by trader and twitterer Brenna
Hardman, and in it you can see what Paulson is getting at.
Gold holdings as a percentage of pension and money market funds
remains ultra-tiny. You can make a case about whether or not this
matters or not, but the gist of his argument is that you can't
have a bubble when ownership is this tiny.